Which of the following statements is NOT correct? Multiple Choice If demand is unitary elastic, an increase in the price of a good will not change total revenue. Total revenue will fall if consumer’s response to a price cut is relatively smaller than the price cut. If demand is elastic, a higher price will actually decrease total revenue. If the relative change in price is greater than the relative change in the quantity demanded associated with it, demand is inelastic.
Which of the following statements is NOT correct? Multiple Choice If demand is unitary elastic, an increase in the price of a good will not change total revenue. Total revenue will fall if consumer’s response to a price cut is relatively smaller than the price cut. If demand is elastic, a higher price will actually decrease total revenue. If the relative change in price is greater than the relative change in the quantity demanded associated with it, demand is inelastic.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 9CQ
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Question
Which of the following statements is NOT correct?
Multiple Choice
If
Total revenue will fall if consumer’s response to a price cut is relatively smaller than the price cut.
If demand is elastic, a higher price will actually decrease total revenue.
If the relative change in price is greater than the relative change in the quantity demanded associated with it, demand is inelastic.
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